Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Redevelopment agency approves $250,000, zero‑interest loan for Honeysuckle Coffee build‑out
Summary
Midvale Redevelopment Agency approved a $250,000, seven‑year, 0% interest loan to Honeysuckle Coffee Company LLC to build out a café and bakery at 7511 Main Street; loan payments begin the first full month after opening or December 1, whichever is sooner.
The Redevelopment Agency (RDA) of Midvale on May 6 approved a term sheet for a $250,000 business loan to Honeysuckle Coffee Company LLC to finance build-out of a café and bakery at 7511 Main Street.
RDA staff told the board the loan is a seven‑year zero‑percent interest loan. The first payment will be due the first full month after the business opens or December 1, whichever occurs sooner; monthly amortized payments will follow an amortization schedule included in the RDA packet. Borrower must document permitted uses of loan funds with invoices and receipts.
As collateral, the borrower will pledge 70% of collateral value comprising newly purchased equipment for the Midvale café plus existing equipment at its Sandy and Salt Lake City locations. The RDA will take a first-position lien on the pledged equipment; remaining collateral support will be a second-position lien on the borrower’s personal residence. RDA staff said equipment value is accepted at 40% of current value for loan‑security purposes.
The $250,000 loan will be drawn from the RDA’s small-business loan program budget; staff said program balance after approval will remain sufficient (packet showed an existing program budget and projected balance). The RDA board approved the term sheet unanimously. Honeysuckle representatives were present and described plans to operate bakery production from a converted residential structure with outdoor seating and event space for evening services.
